ContextLogic Releases Second Quarter Financial Report and Reveals Three Future Initiatives

On August 13, Beijing time , ContextLogic, the parent company of the cross-border e-commerce platform Wish, released its second quarter 2021 financial report. It is understood that ContextLogic went public at the end of last year. In a letter to investors, it stated that "the second quarter of 2021 was full of challenges. Although logistics improved, user retention declined."

1. Wish Second Quarter Financial Report Highlights

The financial report showed that the second quarter revenue was US$656 million, while the market expected US$722 million; the second quarter net loss was US$111 million, while the market expected a net loss of US$93 million; the loss per share was US$0.18, lower than market expectations.

( Wish announces second quarter 2021 revenue data)

*The revenue data in the above figure is in millions and is unaudited.

By business, in the second quarter, the core market revenue of the Wish platform was US$378 million, a year-on-year decrease of 32%; but the core market revenue generated by each active user on Wish increased, increasing by 21% to US$22 compared with the same period last year.

ProductBoost's revenue grew 11% year-over-year to $50 million, as merchants increased their advertising spending in the second quarter of this year as the pandemic situation gradually improved.

Logistics revenue reached US$228 million, a year-on-year increase of 126%. In the second quarter, the number of products in Wish Express overseas warehouses increased by 291% year-on-year. At the same time, the number of Wish Local offline partner stores worldwide has exceeded 60,000; in the second quarter, orders sent to Wish Local partner offline stores accounted for 10% of the total orders.

Piotr Szulczewski, founder and CEO of Wish, said: "After failing to meet expectations in the second quarter, Wish has advanced measures aimed at improving user experience and increasing user engagement. Wish's goal is to ensure that users often like to come to Wish for an interesting shopping experience, where they can find affordable and unique products. In the future, Wish will continue to focus on improving product quality, enriching product variety, providing a consumer experience that combines entertainment and shopping, and optimizing the interaction of the Wish APP, continuously driving new user growth and improving user retention, so as to achieve sustainable profitability. Wish is working hard to improve its performance and believes that Wish will become a stronger company."

2. Three major measures to improve user experience

Wish still has a long way to go to make the company bigger and stronger . Currently, Wish has implemented the following measures to improve user experience and increase user retention, including:

1. Improve product quality and enrich product variety.

Under the new quality rating system, Wish will empower "good products" and "good merchants", especially those products and merchants that have gained a good reputation among users. In addition, Wish has added more world-renowned brands and products that users know and search for to drive their higher-frequency purchases and generate higher average order values. Since Wish provides users with a discovery-based e-commerce shopping experience, categories such as clothing, household goods, and gadgets will provide users with a shopping experience similar to "online treasure hunting". In the future, Wish will provide more high-quality products with high cost performance to improve user experience.

2. Provide unparalleled fun and entertaining shopping experience.

Wish hopes that users will always experience a pleasant sense of freshness on the platform, just like they have entered a store with products that interest them greatly. In order to meet this user expectation, Wish further builds the platform's data science capabilities to develop a more attractive, personalized and discovery-based online shopping experience for users. Wish tends to combine the functions of social commerce and entertainment content, such as video reviews and live shopping events, in order to attract users to be more enthusiastic about opening the Wish APP and stay longer.

3. Improve the performance of Wish APP.

Because Wish was built on a culture of innovation and experimentation, there is a large amount of ongoing platform testing designed to drive innovation. However, the volume of these tests has resulted in slowdowns or delays in the Wish app. This has impacted the user experience, especially for Wish's existing users. As a result, Wish has conducted a thorough investigation and treatment of all open tests, which has significantly improved latency. Going forward, Wish will more effectively balance platform testing to drive innovation with the need to maintain optimal platform performance for users.

Competition in the global e-commerce industry is becoming increasingly fierce, compliance supervision is becoming stricter, and the capital market is becoming more rational, which is the case in all walks of life. Whether from the perspective of revenue growth or profit model, Wish still faces many challenges. Let us wait and see whether Wish can survive the cross-border turbulence and gain a stable foothold in the global e-commerce platform.

Wish Platform